Blog Archives

The mercury is rising out there. With the Deputy Prime Minister has been accused of being linked to murder, a former Deputy Prime Minister accused of having too much fun while rumor of the announcement of emergency tomorrow, I think it is time to chill out a bit. There will be a huge gathering tomorrow. […]

After years of plugging a pinky into a hole of an imperfect dike, the rising tide behind it has grown sufficiently large that the dike can no longer withstand the pressure on the other side. The dike was not supposed to be there in the first place and now reality looms. In reaction to the […]

With the liberalization of the retail fuel market is making headlines on almost daily basis, the volume of liberal-friendly announcement has been dizzying. I am happy of the trend seen within the local retail fuel market of course but I fear the rate of change may be too fast for it to last for long. […]

Never I actually thought this would ever be implemented: cash transfer instead of in kind! PUTRAJAYA: The government is looking at ways to channel cash to the neediest target groups should the diesel subsidy be removed. Deputy Prime Minister Datuk Seri Najib Razak, commenting on a Domestic Trade and Consumer Affairs Ministry announcement on Thursday […]

Roger Cohen at the NYT insists that biofuel is not the cause of food crisis, or at least not a major one if one wants to be accurate about magnitude, since it is still a small industry. Instead, he is convinced that what is causing it is protectionism. Much larger trends are at work. They […]

[1628] Of hail Shahrir Samad!

KUALA LUMPUR: The restructured fuel subsidy scheme will see the removal of subsidy on diesel first. Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said diesel would soon be sold at the market rate at the pumps when a mechanism to deliver subsidies directly to those entitled has been decided upon. [Subsidy on diesel […]

The current direction of public debate on fuel subsidy has slightly cheesed me off. This is one of few areas that are refreshingly different from legacy issues that tread along the path of ethnicity and religion. While I am happy that an increasing number of individuals would like to see a more liberalized market, I […]

On Tuesday, I expressed my disbelief of NST advocating for an elimination of fuel subsidy based on economic reasoning. Mainstream media controlled by UMNO is not known for its economic rationale but are only good at sucking up at anything that UMNO says. Therefore, I opined that the support is possibly due to the NST […]

At 10 per cent — the official estimate — of the fuel subsidy, the Economic Planning Unit in 2005 characterised the illegal outflow as “akin to giving to foreigners the subsidies intended for Malaysians”. Now that our neighbours have reduced their fuel subsidies, it is perhaps time to stop subsidising them and to take away […]

Subsidy leads to inefficiency. Notwithstanding the reasoning, sometimes subsidy could be justified; sometimes, efficiency is not the only consideration of a society. The word subsidy is commonly heard when a society tries to address the problem of inequity; subsidy is a tool of wealth redistribution. I maintain a high dose of skepticism against any subsidy […]

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